What is the impact of the Illinois Rider on Section 18.07 of the Checkers Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- Arbitration; Jurisdiction and Venue. Sections 18.05 and 18.07 of the Agreement shall be amended by adding the following:
Despite the provision, Franchisor and Franchisee agree that any action brought by one of them against the other must be instituted in a state or federal court located in the State of Illinois.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Illinois Rider modifies Section 18.07 of the Franchise Agreement, which likely pertains to jurisdiction and venue. Specifically, the rider stipulates that any legal action initiated by either Checkers or the franchisee against the other must be filed in a state or federal court located within the State of Illinois.
This modification means that if a Checkers franchisee in Illinois has a dispute with the company that leads to legal action, the case must be heard in Illinois, regardless of what the original Section 18.07 might have stated. This could be advantageous for an Illinois franchisee, as it ensures that any legal proceedings will take place in their home state, potentially reducing travel costs and making it easier to secure local legal representation.
It is important for prospective Checkers franchisees in Illinois to understand this modification, as it overrides any conflicting terms in the standard Franchise Agreement. This ensures that Illinois franchisees have the benefit of litigating disputes with Checkers in a local Illinois court. Franchisees should carefully review the full Illinois Rider to understand all of their rights and obligations under Illinois law.